The CIMB Group’s internal audit function is undertaken by the Group Internal Audit Division (GIAD), which reports directly to the ACs (Audit Committees). GIAD was established to provide the ACs with an independent assurance on the efficiency and effectiveness of the internal control systems implemented by the management. The internal audits conducted are in accordance with the annual audit plans approved by the Audit Committee. A strong internal control environment has been ingrained into the culture of the Group to achieve the goals in maximizing shareholders’ value and identify enterprise-wide cost efficiencies. The effectiveness of the Group’s system of internal controls is reviewed periodically by the AC.
How ACs can enhance the role of internal audit and what are its positive aspects? ACs reviews and ensures the internal audit function adopts a risk-based approach which provides independent and objective reports on the state of the Group’s internal control and the extent of compliance with the established policies and procedures as well as relevant regulatory requirements. Risk management and control is an integral part of the Group’s commitment as it believes that the delivery of shareholders’ returns depends on the achieving the appropriate balance between risk and return, both in the day-to-day business and in the strategic management of the balance sheet and capital. In addition, regular reviews and updates are performed to the policies and procedures to ensure continuous improvements in operational efficiency while taking into consideration the changing industrial profile on regulatory requirements, risks and internal control measures for mitigation, and new products and services.
Besides, AC support the IA monitoring the operational risk which includes undertakes investigations into alleged frauds by staff, customers and third parties, and recommends appropriate improvements to prevent recurrence and actions against persons...